Financial Analysis Of Annual Report Of Pil

1,323 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,323
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
32
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Financial Analysis Of Annual Report Of Pil

  1. 1. Financial Analysis of Premier Insurance for 08 & 09 Submitted to: Mr. Bilal Rasul Submitted by: Kamran Arshad(F-09-204)
  2. 2. PREMIER INSURANCE LIMITED Contents Company Information 3 Notice of Annual General Meeting 4 Key Operating and Financial Data 6 Performance at a Glance 7 Key points in Report of the Directors 9 Key points In Independent Auditors' Report 11 Balance Sheet 12 Profit and Loss Account 14 Statement of Changes in Equity 15 Statement of Cash Flows 17 Analysis of Accounting Ratios 19
  3. 3. ANNUAL REPORT 2009 Company Information Board of Directors Syed Arshad Ali Khalid Bashir Zahid Bashir (Chairman) Imran Maqbool Nadeem Maqbool Khurram Mazhar Shams Rafi Fakhir Rahman (Chief Executive) Company Secretary Afroz Quraishi Audit Committee Khalid Bashir (Chairman) Imran Maqbool Nadeem Maqbool Auditors Anjum Asim Shahid Rahman Chartered Accountants Legal Advisors Arfin & Company Advocates Registered & Head Office 5th Floor, State Life Building No. 2A Wallace Road, Karachi-74000, Pakistan Phones : (21) 32416331-4 Fax : (21) 32416572 Email : info@pil.com.pk Website : www.pil.com.pk Registrar FAMCO Associates (Pvt) Limited 1st Floor, State Life Building No. 1A I. I. Chundrigar Road Karachi-74000, Pakistan 03
  4. 4. PREMIER INSURANCE LIMITED Notice of Annual General Meeting Notice is hereby given that the 58th Annual General "RESOLVED THAT a sum of Rs 39,498,435 Meeting of the company will be held at the out of the free reserves of the company be Auditorium of the Institute of Chartered Accountants capitalized and applied to the issue of 7,899,687 of Pakistan (ICAP) at Chartered Accountants Ordinary Shares of Rs 5 each and allotted as Avenue, Clifton, Karachi, on Thursday, April 29, 2010 fully paid up Bonus Shares to the Members, at 09:00 a.m. to transact the following business: who are registered in the Books of the company at the close of business on April 19, 2010 in the A. ORDINARY BUSINESS proportion of three new shares for every twenty existing Ordinary Shares held and that such 1. To confirm the minutes of the Annual new shares shall rank pari passu with the General Meeting held on April 27, 2009; existing Ordinary Shares of the company. 2. To receive, consider and adopt the audited That for the purpose of giving effect to the financial statements of the company for the year foregoing, the Chief Executive, Chief Financial ended December 31, 2009, the report of the Officer and Company Secretary be and are Auditors thereon and the report of the Directors; hereby singly authorized to give such directions as may be necessary and settle any questions 3. To approve the payment of a cash dividend @ or any difficulties that may arise in the 20% i.e. Re. 1 per ordinary share of Rs 5 each, distribution of the said new shares." out of the profit for the year ended December 31, 2009, as recommended by the Directors; 6. To transact any other business with the permission of the Chair. 4. To appoint Auditors of the company and fix their remuneration. The present Auditors, M/ s. Anjum Asim Shahid Rahman, Chartered By Order of the Board Accountants, being eligible, have offered themselves for re-appointment; Afroz Quraishi Company Secretary B. SPECIAL BUSINESS Karachi, April 2, 2010 5. To approve the issuance of bonus shares @ 15% i.e. 3 ordinary shares for every 20 ordinary shares held, out of the profit for the year ended December 31, 2009, as recommended by the Directors by passing the following Ordinary Resolution: 04
  5. 5. ANNUAL REPORT 2009 NOTES i) As per the Articles of Association of the company, any fractional entitlements to bonus shares shall be consolidated and disposal proceeds distributed to the shareholders according to their fractional entitlements. ii) A member entitled to attend and vote at the above meeting may appoint a proxy to attend and vote on his behalf. No person shall act as a proxy (except for a corporation) unless he is entitled to be present and vote in his own right. Instrument appointing proxy must be deposited at the Registered Office of the company at least 48 hours before the time of the meeting. iii) Shareholders whose shares are deposited with the Central Depository Company (CDC) are requested to bring their original National Identity Card and account number in CDC for verification. iv) CDC account holders will further have to follow the guidelines as laid down in Circular No.1, dated January 26, 2000 issued by the Securities and Exchange Commission of Pakistan. v) Shareholders are requested to notify our Registrar immediately of any change in their addresses. Statement under section 160 of the Companies Ordinance, 1984 pertaining to the Special Business: 1. This statement sets out the material facts pertaining to the Special Business to be transacted at the Annual General Meeting of the company to be held on April 29, 2010 2. Item 5 regarding Bonus issue: Your Directors have recommended the issue of Bonus Shares in the proportion of 3 new shares for every 20 existing Ordinary Shares held at the close of business on April 19, 2010. The Directors are interested in this business to the extent of their entitlement to Bonus Shares as Members. 5
  6. 6. PREMIER INSURANCE LIMITED Key Operating and Financial Data (Amounts in Rupees '000) 2009 2008 2007 2006 2005 2004 Paid-up capital 263,323 239,385 199,488 166,240 138,533 115,444 Capital reserves 19,675 19,675 19,675 19,675 19,675 19,675 Revenue reserves 1,491,342 1,509,814 1,627,043 1,214,600 554,587 275,327 Total reserves 1,511,017 1,529,489 1,646,718 1,234,275 574,262 295,002 Total equity 1,774,340 1,768,874 1,846,206 1,400,515 712,795 410,446 Total assets 2,788,719 2,701,366 2,943,197 2,393,943 1,738,274 1,486,848 Premium written 670,430 577,114 551,699 630,395 631,393 515,851 Net premium 335,456 295,834 346,832 389,232 360,164 194,601 Investment income 222,181 185,627 542,582 798,115 341,996 165,462 Impairment in investments (126,161) (213,216) - - - - Profit / (loss) before taxation 79,653 (44,911) 495,685 719,721 339,438 158,437 Profit / (loss) after taxation 53,343 (37,435) 478,939 715,427 325,438 117,437 Return on equity* (%) 3.01% (2.07%) 29.50% 67.71% 57.95% 32.07% Book value per share** (Rs) 33.69 36.95 46.27 42.12 25.73 17.78 Earnings per share** (Rs) 1.01 (0.78) 12.00 17.93 11.75 5.09 Cash dividend (%) 20% 20% 20% 20% 20% 20% Stock dividend (Bonus - %) 15% 10% 20% 20% 20% 20% *Return based on average equity for the year **Book value / earnings based on shares in issue at year end 06
  7. 7. ANNUAL REPORT 2009 Performance at a Glance Premium 800,000 Premium written Net premium 700,000 600,000 500,000 Rs '000 400,000 300,000 200,000 100,000 - 2009 2008 2007 2006 2005 2004 Profit 800,000 Profit before taxation Profit after taxation 700,000 600,000 Rs'000 500,000 400,000 300,000 200,000 100,000 - 2009 2008 2007 2006 2005 2004 (100,000) Earnings per share 18.00 16.00 14.00 12.00 10.00 8.00 Rs 6.00 4.00 2.00 - 2009 2008 2007 2006 2005 2004
  8. 8. 07
  9. 9. PREMIER INSURANCE LIMITED Performance at a Glance Equity Revenue reserves 2,000,000 Paid-up capital 1,800,000 1,600,000 Capital reserves 1,400,000 1,200,000 '000 1,000,000 800,000 Rs 600,000 400,000 200,000 - 2009 2008 2007 2006 2005 2004 Return on equity 70% 60% 50% 40% 30% 20% 10% 0% -10% 2009 2008 2007 2006 2005 2004 Book value per share 50.0 45.0 40.0 35.0 30.0 25.0 20.0 Rs 15.0 10.0 5.0 - 2009 2008 2007 2006 2005 2004
  10. 10. 08
  11. 11. ANNUAL REPORT 2009 Key Points in Report of the Directors Review (Amounts in Rupees '000) Net of all expenses, amounted to Rs 79.7 million 2009 2008 (2008: loss Rs 44.9 million). Profit after taxation of Rs 53.3 million equates an Premium written 670,430 577,114 earning of Rs 1.01 per ordinary share of Rs 5 Net premium 335,456 295,834 each. Underwriting result 20,952 8,393 Investment income 222,181 185,627 Appropriation of Profit Impairment in value of available for sale investments (126,161) (213,216) (Amounts in Rupees '000) Profit / (loss) before taxation 79,653 (44,911) Profit / (loss) after taxation 53,343 (37,435) Profit after taxation for the year 53,343 Unappropriated profit brought forward 109,464 • In terms of premium written business 162,807 growth in excess of 16% came from all Appropriations: business classes. - Payment of cash dividend @ 20% (2008) (47,877) • The miscellaneous category increased - Issue of bonus shares @ 10% (2008) (23,938) 71% to provide greater diversification to the underwriting portfolio. 90,992 - Transfer from general reserve (2009) 150,000 • Net premium increased by about 14% reflecting the timing, business class and Unappropriated profit carried forward 240,992 retention mix of the written premium. • A reduction in the claims ratio and cost Appropriated as follows: containment produced an underwriting result of Rs 21 million (2008: Rs 8.4 - Proposed cash dividend @ 20% (2009) million). - Proposed bonus issue @ 15% (2009) • Investment and treasury income grew a healthy 20%. Outlook for the Current Year • The balance of Rs 187.9 million impairment in value of "available for sale" Our country is effectively at war; our exports investments at December 31 2008 was stagnant, imports inelastic; inflation, fiscal, current reduced by Rs 61.7 million, a full 33%, to account deficits, exchange rates stable at best and Rs 126.2 million recognized in 2009, with likely moving negatively. In a basically zero growth precise, deliberate action. economy, business retention takes priority though acquisition remains an objective. Therefore, even as we consolidate and streamline our portfolios and infrastructure, we intend to capture opportunities that we develop or that appear on our radar.
  12. 12. PREMIER INSURANCE LIMITED Your company is solidly capitalized with Rs 1.8 billion · There is no doubt about the company's ability of equity giving net asset value of Rs 33.7 per share to continue as a going concern. of Rs 5 each. Our Insurer Financial Strength (IFS) Rating has been reaffirmed at A (Single A) with Stable · There has been no material departure from Outlook. The rating by JCR - VIS denotes a "high the best practices of Corporate Governance capacity to meet policyholder and contract obligations". as detailed in the listing regulations. · The value of investments based on the audited Corporate Financial Reporting accounts of the Provident Fund as at December The Board is pleased to declare the following as 31, 2008 was Rs 26.3 million. required by the Code of Governance: The directors, CEO, CFO, Company Secretary, · The financial statements prepared by the executives and their spouses and minor children, management of the company, present fairly its had no transactions in the shares of the company. state of affairs, the results of its operations, cash flows and changes in equity. Appointment of Auditors · The company has maintained proper books of As recommended by the audit committee, the account. directors propose that Anjum Asim Shahid Rahman, Chartered Accountants, be re-appointed auditors of · Appropriate accounting policies have been the company for the year ending December 31, 2010. consistently applied in the preparation of the financial statements and accounting estimates are based on reasonable and prudent judgment. Acknowledgement · Approved Accounting Standards, as applicable in The directors acknowledge the dedication of the company's Pakistan, have been followed in preparation of employees; thank all our business associates and financial statements and any departure there shareholders for their confidence in the company, and our from has been adequately disclosed. regulators for their guidance and support. · The system of internal controls is sound in design and has been effectively implemented On behalf of the Board and monitored. Zahid Bashir Chairman Karachi: April 2, 2010
  13. 13. 10
  14. 14. ANNUAL REPORT 2009 Key Point in Independent Auditors' Report The auditors audited the annexed financial statements comprising: (i) balance sheet; (ii) profit and loss account; (iii) statement of changes in equity; (iv) statement of cash flows; (v) statement of premium; (vi) statement of claims; (vii)statement of expenses; and (viii)statement of investment income Of Premier Insurance Limited as at December 31, 2009 together with the notes forming part thereof, for the year then ended. In their opinion: (a) proper books of accounts have been kept by the Company as required by the Insurance Ordinance, 2000 and the Companies Ordinance, 1984; (b) the financial statements together with the notes thereon have been drawn up in conformity with the Insurance Ordinance, 2000 and the Companies Ordinance, 1984, and accurately reflect the books and records of the Company and are further in accordance with accounting policies consistently applied; (c) the financial statements together with the notes thereon present fairly, in all material respects, the state of the Company's affairs as at December 31, 2009 and of the profit, its cash flows and changes in equity for the year then ended in accordance with approved accounting Standards as applicable in Pakistan, and give the information required to be disclosed by the Insurance Ordinance, 2000 and the Companies Ordinance, 1984; and (d) zakat deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980), was deducted by the Company and deposited in Central Zakat Fund established under Section 7 of that Ordinance. Anjum Asim Shahid Rahman Chartered accountants Shahzada Saleem Chughtai Date: April 2, 2010 Karachi 11
  15. 15. PREMIER INSURANCE LIMITED Balance Sheet As at December 31, 2009 (Amounts in Rupees '000) Note 2009 2008 SHAREHOLDERS' EQUITY AND LIABILITIES Share capital and reserves Authorised share capital 100,000,000 ordinary shares of Rs 5 each 500,000 500,000 Issued subscribed and paid-up capital 52,664,582 (2008: 47,876,893) ordinary shares of Rs.5 each 6 263,323 239,385 Retained earnings 240,992 109,464 Reserves 7 1,270,025 1,420,025 Shareholders' equity 1,774,340 1,768,874 Underwriting provisions Provision for outstanding claims (including IBNR) 251,112 326,555 Provision for unearned premium 314,524 264,823 Commission income unearned 37,206 28,165 Total underwriting provisions 602,842 619,543 Deferred liability Staff retirement benefits 8 21,068 17,094 Creditors and accruals Current maturity of lease finance - 595 Amounts due to other insurers / reinsurers 84,239 55,510 Accrued expenses 13,620 11,528 Taxation - provision less payments 104,434 87,674 Other creditors and accruals 9 181,677 135,318 383,970 290,625 Other liabilities Unclaimed and dividend payable 6,499 5,230 TOTAL EQUITY AND LIABILITIES 2,788,719 2,701,366 CONTINGENCIES AND COMMITMENTS 10 The annexed notes from 1 to 32 form an integral part of these financial statements.
  16. 16. 12
  17. 17. ANNUAL REPORT 2009 (Amounts in Rupees '000) Note 2009 2008 ASSETS Cash and bank deposits 11 Cash and other equivalents 302 294 Current and other accounts 211,533 50,500 Deposits maturing within 12 months 3,497 825,777 Deposits maturing after 12 months 5,246 8,743 220,578 885,314 Loans to employees 12 2,412 3,118 Investments 13 1,245,694 607,161 Investment properties 14 56,393 25,583 Other assets Premium due but unpaid 15 276,503 152,469 Amounts due from other insurers / reinsurers - unsecured, considered good 362,988 355,372 Accrued investment income 16 2,690 20,387 Accrued salvage recoveries 9,350 - Reinsurance recoveries against outstanding claims 138,774 218,625 Deferred commission expense 43,941 36,763 Prepayments 17 173,245 143,080 Sundry receivables 18 29,467 6,635 1,036,958 933,331 Fixed assets 19 Tangible Land and buildings 146,465 146,781 Furniture, fixtures and office equipment 16,956 17,312 Motor vehicles 31,050 30,357 Capital work in progress 20 30,072 50,965 Intangible Computer software 2,141 1,444 226,684 246,859 TOTAL ASSETS 2,788,719 2,701,366 Zahid Bashir Nadeem Maqbool Shams Rafi Fakhir Rahman Chairman Director Director Chief Executive Karachi: March 24, 2009 13
  18. 18. PREMIER INSURANCE LIMITED Profit and Loss Account For the year ended December 31, 2009 (Amounts in Rupees '000) Note 2009 2008 Marine, Fire and aviation property & transport Motor Others Treaty Aggregate Aggregate Revenue accounts Net premium revenue 125,162 39,974 150,959 19,375 (14) 335,456 295,834 Net claims (16,756) (9,714) (113,301) (9,442) (185) (149,398) (138,807) Expenses 21 (51,054) (16,305) (61,576) (7,904) 6 (136,833) (126,306) Net commission (15,373) (3,665) (14,819) 5,578 6 (28,273) (22,328) Underwriting result 41,979 10,290 (38,737) 7,607 (187) 20,952 8,393 Investment income 222,181 185,627 Gain on disposal of fixed assets 2,632 964 Rental income 2,104 1,614 Other income 1,530 - General and administration expenses 21 (43,585) (28,293) Impairment in value of available for sale investments 13.7 (126,161) (213,216) Profit / (loss) before tax 79,653 (44,911) Provision for taxation 22 (26,310) 7,476 Profit / (loss) after tax 53,343 (37,435) Profit and loss appropriation account Balance at commencement of year 109,464 626,693 Profit / (loss) after tax for the year 53,343 (37,435) Cash dividend for 2008 at Re. 1 per share (2007: Re. 1 per share) (47,877) (39,897) Bonus shares for 2008 at 10% (2007: 20%) (23,938) (39,897) Transfer from / (to) general reserve 150,000 (400,000) Balance unappropriated profit at the end of the year 240,992 109,464 Earnings / (loss) per share - basic and diluted (in Rupees) 23 1.01 (0.71) The annexed notes from 1 to 32 form an integral part of these financial statements. Zahid Bashir Nadeem Maqbool Shams Rafi Fakhir Rahman Chairman Director Director Chief Executive Karachi: March 24, 2009 14
  19. 19. ANNUAL REPORT 2009 Statement of Changes in Equity For the year ended December 31, 2009 (Amounts in Rupees '000) Share capital Reserves Capital reserves Revenue reserves Issued, Reserve Reserve for subscribed for Reserve for bad and Unappro- and exceptional Devaluation issue of General doubtful priated Total Total paid-up losses reserve bonus shares reserve debts profit reserves equity Balance as at January 1, 2008 199,488 19,490 185 - 1,000,000 350 626,693 1,646,718 1,846,206 Loss after tax for the year ended December 31, 2008 - - - - - - (37,435) (37,435) (37,435) Cash dividend for the year ended December 31, 2007 declared subsequent to the year end - - - - - - (39,897) (39,897) (39,897) Bonus shares for the year ended December 31, 2007 declared subsequent to the year end - - - 39,897 - - (39,897) - - Bonus shares issued 39,897 - - (39,897) - - - (39,897) - Transfer to general reserve - - - - 400,000 - (400,000) - - Balance as at December 31, 2008 239,385 19,490 185 - 1,400,000 350 109,464 1,529,489 1,768,874 Profit after tax for the year ended December 31, 2009 - - - - - - 53,343 53,343 53,343 Cash dividend for the year ended December 31, 2008 declared subsequent to the year end - - - - - - (47,877) (47,877) (47,877) Bonus shares for the year ended December 31, 2008 declared subsequent to the year end - - - 23,938 - - (23,938) - - Bonus shares issued 23,938 - - (23,938) - - - (23,938) - Transfer from general reserve - - - - (150,000) - 150,000 - - Balance as at December 31, 2009 263,323 19,490 185 - 1,250,000 350 240,992 1,511,017 1,774,340 The annexed notes from 1 to 32 form an integral part of these financial statements. Zahid Bashir Nadeem Maqbool Shams Rafi Fakhir Rahman Chairman Director Director Chief Executive Karachi: March 24, 2009
  20. 20. 15
  21. 21. PREMIER INSURANCE LIMITED Statement of Cash Flows For the year ended December 31, 2009 (Amounts in Rupees '000) 2009 2008 OPERATING CASH FLOWS a) Underwriting activities Premium received 538,780 489,321 Reinsurance premium paid (284,442) (324,116) Claims paid (442,838) (458,758) Reinsurance and other recoveries received 297,848 277,914 Commissions paid (63,992) (65,728) Commissions received 70,042 57,323 Net cash flow from / (used in) underwriting activities 115,398 (24,044) b) Other operating activities Income tax paid (9,551) (9,003) General management expenses paid (136,833) (126,306) Other operating payments (25,735) (14,348) Advances, deposits and sundry receivables (12,353) 1,123 Other liabilities and accruals 12,272 1,171 Net cash used in other operating activities (172,200) (147,363) Total cash used in operating activities (56,802) (171,407) INVESTMENT ACTIVITIES Investment income received 88,018 82,750 Payments for investments (2,887,288) (2,070,204) Proceeds from disposal of investments 2,253,065 2,896,160 Fixed capital expenditure (22,384) (50,723) Proceeds from disposal of fixed assets 3,909 3,142 Rentals received 2,419 1,672 Other income received 1,530 - Deposits matured 3,497 - Total cash (used in) / flow from investing activities (557,234) 862,797 FINANCING ACTIVITIES Dividends paid (46,608) (39,791) Payment against finance lease (595) (1,214) Total cash used in financing activities (47,203) (41,005) Total cash (used in) / flow from all activities (661,239) 650,385 Cash and cash equivalents at beginning of the year 876,571 226,186 Cash and cash equivalents at end of the year 215,332 876,571
  22. 22. 1 6
  23. 23. ANNUAL REPORT 2009 (Amounts in Rupees '000) 2009 2008 Reconciliation to profit and loss account Operating cash flows (56,802) (171,407) Depreciation expense (10,158) (7,077) Investment income 222,181 185,627 Profit on disposal of fixed assets 2,632 964 Rental income 2,104 1,614 Other income 1,530 - Impairment in value of available for sale investments (126,161) (213,216) Increase in assets other than cash 99,229 2,668 (Increase) / decrease in liabilities (81,212) 163,392 Profit / (Loss) after taxation 53,343 (37,435) Definition of cash Cash comprises cash in hand, stamps in hand, current and saving accounts and short-term deposits. Cash for the purpose of the statement of cash flows consists of: Cash and other equivalents Cash 3 65 Stamps in hand 299 229 302 294 Current and other accounts Current accounts 10,752 7,292 Savings accounts 200,781 42,838 Statutory deposit with State Bank of Pakistan - 370 211,533 50,500 Deposits maturing within 12 months 3,497 825,777 Total cash and cash equivalents 215,332 876,571 The annexed notes from 1 to 32 form an integral part of these financial statements. Zahid Bashir Nadeem Maqbool Shams Rafi Fakhir Rahman Chairman Director Director Chief Executive Karachi: March 24, 2009
  24. 24. PREMIER INSURANCE LIMITED Financial Ratio Analysis LIQUIDITY ANALYSIS RATIOS Name Formula 2008 (%) 2009 (%) Current Ratio Current Assets/ Current Liabilities 1.42 0.36 Working Capital Working Capital/Total Assets 0.09 0.13 COMMENTS The current ratio should ideally be more then 1.5. A current ratio of less than one indicates an excess of current liabilities which generally mean that the company is unable to generate enough assets to meet the liabilities. Therefore the current ratio of less than one is a warning sign and needs further investigation. Working Capital is the amount that is left free and clear after all current debts and paid. It is also an amount available without sufficient working capital. Working capital is important because without sufficient working capital a company is not able to sustain itself for long.
  25. 25. PROFITABILITY RATIOS Name Formula 2008 2009 4. 8. Return on Assets Net Income/ Avg Total Assets 05 64 6. 13. Return on Equity Net Income/Avg Stockholders Equity 19 58 37. 71. Profit Margin Net Income/Sales 00 84 Earnings Per Share Net Income/Total Shares Outstanding 0.78 1.01 COMMENTS Return on assets ratio gives a picture of how much a company has earned from its assets in one financial year. Return on equity tells us how much an investor is getting on its equity. Profit Margin is one of the most commonly used financial analysis ratio to determine a company’s financial health in terms of profit and sales. Earning per share is the net income with respect to outstanding common shares. ANNUAL REPORT 2009 Financial Ratio Analysis ACTIVITY ANALYSIS RATIOS Name Formula 2008 2009 Asset Turnover Ratio Sales/ Average Total Assets 10.95 12.03 4,45 Acct. Receivable Turnover Ratio Sales/Average Acct. Receivable 8.69 1,138.41 COMMENTS These ratios show the turning over of assets, inventories and accounts receivables during one year time period. Assets turnover ratio is used to measure relationship of sales and assets. The total assets turnover ratio tells the efficiency with which a firm utilizes its total assets to generate sales. Account receivable turnover ratio is used to measure sales of a particular year. CAPITAL STRUCTURE ANALYSIS RATIOS Name Formula 2008 2009 Debt to Equity Ratio Total Liabilities/Total Stockholder Equity 52.7167 57.16937 (Income B4 Interest+ Income Tax)/ Interest Interest Coverage Ratio Expense 7.0 4.02 COMMENTS Debt to equity ratio is used to measure company’s capital structure CAPITAL MARKET ANALYSIS RATIOS Name Formula 2008 2009 Price Earning (P/E) Ratio Market Price Per Share/ Earning Per Share 24.33 12.44 Market to Book Ratio Market Price Per Share/ Book Value of Equity 0.51 0.37 Dividend Payout Ratio Cash Dividend/Net Income 43.74 21.85
  26. 26. COMMENTS Capital Market Analysis Ratio depicts the repute of a company performance wise in the capital market and how much its credentials and performance is affecting the shares in stock market. Price earning ratio gives the analysis if the company shares are overvalued in the market. Market to book ratio is used to calculate if the share is undervalued. Dividend payout ratio is used to measure the percentage of income being consumed in paying out the dividends.

×